Technical Analysis Shows Support at $2,500 Level

TLDR

• Ethereum (ETH) surged 60% in May, reaching a peak of $2,617 before cooling off near $2,509
• Long-term holders are selling their positions, creating two of the largest activity spikes since October
• Over $3.4 billion worth of ETH left centralized exchanges in the past month, showing investor confidence
• Price found support at $2,500 and is attempting to climb toward $3,000 milestone
• Technical indicators show bullish momentum with RSI above 50 and MACD gaining strength

Ethereum completed a 60% rally in May, climbing from lower levels to reach a peak of $2,617. The second-largest cryptocurrency now trades around $2,509 as momentum shows signs of cooling.

The rally attracted $3.42 billion in fresh accumulation throughout the month. However, long-term holders began selling their positions as prices reached higher levels.

Technical analysis shows ETH found support at the $2,500 level before starting a fresh increase. The price climbed above the $2,550 and $2,620 resistance levels during its recent recovery.

Trading data indicates Ethereum is currently positioned above $2,675 and the 100-hourly Simple Moving Average. A connecting bullish trend line has formed with support at $2,550 on the hourly chart.

Long-Term Holders Show Selling Activity

Santiment data reveals the Age Consumed metric flashed red twice in recent days. These spikes represent two of the largest increases in long-term holder activity since October.

The metric measures when dormant ETH tokens change hands. Large spikes typically indicate seasoned investors are selling positions they have held for extended periods.

The magnitude of these moves marks the largest such activity in seven months. This selling pressure from experienced holders could impact ETH’s ability to maintain its upward momentum.

Data shows these holders are likely taking profits after the token’s strong performance. Their selling activity comes as ETH approached what many considered local top levels.

Exchange Flows Signal Confidence

Over the past month, more than 1.34 million ETH left centralized exchanges. This represents upwards of $3.42 billion worth of the cryptocurrency moving off trading platforms.

The decline in available supply on exchanges typically signals investors are moving tokens to private wallets. This behavior often indicates plans for long-term holding rather than active trading.

The exchange outflows coincided with momentum from Ethereum’s upcoming Pectra upgrade. Market participants appear to be positioning themselves for potential long-term gains.

Technical Outlook Shows Mixed Signals

The Relative Strength Index hovers around 67, just below the overbought threshold of 70. This reading suggests bullish momentum remains intact despite the recent consolidation.

Volume has thinned out near current price levels, indicating reduced trading activity. The daily chart shows price action flattening after the earlier rally.

Resistance levels appear at $2,740 and $2,750, with major resistance at $2,800. A clear break above $2,800 could send the price toward $2,840 and potentially $2,920.

Support levels sit at $2,675 initially, with major support at $2,550 and the trend line. This level aligns with the 61.8% Fibonacci retracement of the recent upward move.

The hourly MACD indicator shows gaining momentum in the bullish zone. The hourly RSI remains above the 50 level, confirming the overall positive trend.

If ETH clears the $2,750 resistance zone, the next target could be the psychological $3,000 level. Current technical indicators suggest the upward trend remains intact despite the recent pause in momentum.